Tet holiday boost for retailers
Tet holiday boost for retailers
Premium packaging plays a crucial role during the run-up to the Tet (Lunar New Year) period, according to a Consumer Study report on Tet 2015 from market research firm Nielsen Vietnam.
Many fast-moving consumer goods enjoy significant sales peak during this time.
Nielsen's report indicates that brands that "bring a feeling of sharing" experience better sales during Tet. The seasonal behaviour establishes a need-driven demand for many categories. Typical Tet categories are confectionaries, carbonated soft drinks and beer.
The sales over the three month period of Tet contribute 28 per cent of annual carbonated soft drink sales. Average beer sales in one Tet month is 1.5 times higher than a regular month.
Biscuits are also popular during Tet, as they are distributed to visitors to family homes. More than 401 options are available for them to choose.
Nielsen said that advertising for non-Tet categories, such as coffee, cooking oil, teabags and even laundry are also popular.
Last year, coffee saw a jaw-dropping 17 per cent growth during the three months of Tet this year compared to the same Tet period in 2014.
Manufacturers are driving stock for Tet earlier than ever to be on shelves at the peak time. As a consequence, consumers are adapting to this new trend and buying products as alternative gift options.
At the other end of the spectrum, emerging behavior of retailers has also been seen.
According to Nielsen's Retailer Sentiment study, the Retailer Confidence Index is on an uptrend, increasing four points from 72 in Q2 to 76 in Q3, in line with the government's forecast of strong economic growth.
At least 24 per cent of retailers also intend to increase their stock level higher than 2015, reflecting their confidence level.
In addition, among those intending to increase their stock, 87 per cent plan to increase to a significant level of more than 10 per cent.
Retailers expect support for Tet sales by ensuring product quality, payment methods, assistance in displays, and strong promotions.
These expectations are varied in different regions. Gift hampers contribute important sales and are more preferable in the North and South East regions.
Retailers expect manufacturers of top selling-products to have more eye-catching and Tet-related packaging. One fits all is not applicable to the market nationwide, according to Nielsen.
